Are you planning your staff Christmas Party?
Understand the tax implications so that you don’t pay tax unnecessarily.
The big one is Fringe Benefits Tax (FBT). This is a tax to the employer when providing benefits to employees in addition to their salary or wage. The Fringe Benefits Tax rate is a whopping 47% of the the fringe benefits taxable value of the benefit provided.
The ability to claim GST on expenditure or an income tax deduction also varies depending on how benefits are provided.
That is, Christmas parties ON your work premises have different tax consequences than Christmas parties held AWAY from your work premises. Christmas Gifts are a different case again.
To keep things simple, take a look at the tables below.
If you venture into FBT territory, we can help you quantify your exposure and offer options to bring the taxable value down to a minimal or NIL level.
Disclaimer: The information we have provided you is purely factual in nature and does not take account of your personal objectives, situation or needs. The information is objectively ascertainable and, therefore, does not constitute advice. If you require personal advice you should consult an qualified tax agent (like us!).
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